U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
Old 05-24-2015, 08:03 PM
Location: Denver CO
19,124 posts, read 10,145,459 times
Reputation: 28012


Originally Posted by luv4horses View Post
My last property purchase, I, as the buyer, paid the appraisal fee. I did not need to show it to the seller either. There is no need for an appraisal if the purchase is going to be paid by cash out of the buyers pocket. That is, no lender involved.
Yes, but the OP posted in the Mortgage forum and asked about "pre-mortgage costs" - meaning a transaction involving a mortgage.
Reply With Quote Quick reply to this message

Old 05-24-2015, 10:12 PM
7,610 posts, read 17,689,040 times
Reputation: 8107
Originally Posted by Truckergirl702 View Post
Yeah, when a lender is doing their up front Truth in Lending and Good Faith Estimate, their charges can be off by quite a bit. The loan officer/originator does their best at these calculations, but I have seen a lot of "doosies" on these disclosures. The figures are not "set" in stone until closing.

So, I did a quick Google, since I have been out of the Mortgage business for a couple of years now...and it does appear that FHA has changed what they allow a borrower to pay. I guess that the ONLY fee that a buyer CAN'T pay , is the Tax Service Fee. So it is important to have a very detailed sales contract when you find that home you want to buy. If you don't write in that the Seller is to pay for all repairs if there are appraisal conditions for repairs, then it will be up to you to pay for said repairs. These repairs are normally required prior to closing. I personally am a bit floored that they would allow such craziness lol. But I guess that you CAN pay for the appraisal as the Buyer in a FHA transaction....
The buyer can pay every fee out there on an FHA loan. VA is the only loan type that restricts what the buyer can pay. The FHA buyer should be counseled by their Realtor, but every FHA contract I've seen in the past decade has an FHA Amendatory Clause and an appraisal contingency, protecting the buyer from buying a home that does not appraise or buying a home with basic safety or code violations. Its the home inspection you need to pay attention to and not all of the recommended repairs will be required. The only required repairs will be the repairs required by the appraisal or the negotiated repairs with the seller.

The GFE has drastically changed in 2010. Loan officers mostly over-estimate due to the (lack of) tolerance level for errors. 0% tolerance on lender fees, 10% tolerance on 3rd party fees, and 0% tolerance government recording fees and 0% tolerance on transfer taxes. What do I mean by 0% tolerance? If the lender estimated wrong, and the actual is higher, the lender must past the difference. Estimates have become much tighter since these rules and are about to get even stricter come August 1, 2015.

Buyers are always responsible for the appraisal fee. (~$475) They can be refunded for it by the seller, but it is a buyer cost, just as the home inspection (~$500). Both fees are spent funds in the event you don't close (be it low appraisal or loan denial) or don't negotiate seller help in your contract.

I strongly recommend you take a first time homebuyers class. This is once instance knowledge really is power.
Reply With Quote Quick reply to this message
Old 05-24-2015, 11:44 PM
Location: St Thomas, USVI - Seattle, WA - Gulf Coast, TX
811 posts, read 639,733 times
Reputation: 2290
Hey so954, there's another thread on here about closing costs that might help you:
First time buyer. Prepaids and other closing related expenses?
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.

Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top